AutoSave O Off) 15 - 7) - Bounty Case Study - Hand Out 2022 (1) v Search (Alt+Q) thembekacele111@gmail.com T X File Home Insert Design Layout References Mailings Review View Help Comments Share Material Presented is for Educational Purposes Only Year 1 Plan (Brand Equity and Awareness Building) Since Bounty Basic is launching in the mid-tier paper towel segment, it is important that costs are minimized wherever possible. As such the finance team is recommending a launch without the support of television media. One alternative awareness building strategy that has been suggested is print media. The marketing team is intent on printing copies that scored well on consumer tests. Based on the copy scores, awareness building and conversion to purchase intent, you have received a model which projects the volume growth per E10,000 investment in magazines and newspapers. The table below summarizes the projected results: Print Media Cost Volume Uplift (units) 10,000.00 37,235.00 20,000.00 86,882.00 30,000.00 153,078.00 10,000.00 235,824.00 50,000.00 335, 118.00 60,000.00 455,098.00 0,000.00 37,843.00 80,000.00 670,941.00 90,000.00 612,314.00 100,000.00 37,137.00 1 10,000.00 661,961.00 Question 1: Determine the optimal level of investment in print media, in terms of maximizing your profit, and justify your choice. Note this strategy is only applicable in Year 1, yet the volume uplift will hold thereafter). Page 6 of 8 2608 words DX English (United States) 1% Accessibility: Investigate Focus . + 100% 04:5 Type here to search Zi O W 18 C Mostly cloudy ~ $ENG 55 2022/11/1.AutoSave (. Off) . () = Bounty Case Study - Hand Out 2022 (1) - Protected View . Saved to this PC v Search (Alt+Q) thembekacele111@gmail.com T X File Home Insert Design Layout References Mailings Review View Help Comments Share PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing X Scenario P&G's Bounty concept "The Quicker Picker-Upper" is well established in the USA and several European countries. Bounty is a high-quality product that stands for absorbency as well as strength and softness. The concept of Bounty Basic has now allowed P&G to play in the mid-tier paper towel category too. After a successful launch of Bounty Basic in the US, P&G Germany is now considering launching this mid-tier offering in Germany in January 20231 (note that these types of investment decisions would normally be made at a Head Quarters level in Cincinnati & Dubai, and not at a country level). Results look promising after an initial phase of soft launch testing for the German Market. Consumer market research estimates that the category base volume on high-tier Bounty paper towels in 2021 was 12,000 cases with each case containing 24 consumer units. The market for high-tier paper towels in Germany is expected to grow by 5% in 2022 then decrease by 0.1% in 2023. The mid-tier paper towel category in Germany was measured to be 25,000 cases in total, with a slightly higher expected category growth of 5.5% for 2022. Due to the growth of the "savvy" ROLL consumer segment driven by higher inflation in the ROULEAU 100 37000 cost of basic goods such as electricity and gas 47792 prices, it is estimated that the mid-tier category will continue to experience positive category growth of county 0.1% in 2023. As a new tier entrant with a strong product, the market research team estimates that Bounty Basic can capture 40% of the expected mid-tier sales in 2023 and will then experience growth equal to that Bounty Bounty Bounty Bounty Bounty of the category growth in 2024 of 2%. Bounty The learning on the soft launch further predicted a 5% rate of cannibalization on the Bounty High-tier category base volume in the first year of the launch of Bounty Basic. 4 P&G Page 4 of 8 2608 words Focus + 100% 04:4 Type here to search W 17.C Partly cloudy ~ BENG 2022/11/14